TORONTO, ONTARIO--(Marketwire - Jan. 12, 2012) -
Lake Shore Gold Corp. (TSX:LSG)(NYSE Amex:LSG) ("Lake Shore Gold" or
the "Company") today reported its production results for the fourth
quarter and full year 2011.
Fourth Quarter Production Highlights
- Gold poured during fourth quarter 2011 totaled 26,550 ounces compared with 16,693 ounces the previous quarter.
- Total gold poured in 2011 was 86,565 ounces, in line with Company's target.
- Gold processed during fourth quarter 2011 was
24,809 ounces based on milling 186,231 tonnes (2,024 tonnes per day) at
average grade of 4.34 grams per tonne ("gpt"). Fourth quarter results
compared to gold processed during previous quarter of 18,833 ounces
based on milling 173,877 tonnes (1,890 tonnes per day) at average grade
of 3.49 gpt.
- Gold processed in full year 2011 totaled 83,585 ounces from milling 671,467 tonnes at average grade of 4.03 gpt.
- Gold sales totaled 21,956 ounces in fourth quarter and 91,468 ounces for full year 2011.
- Cash and gold bullion at December 31, 2011 totaled approximately $65.0 million.
Other Fourth Quarter Highlights
- Released initial National Instrument ("NI") 43-101 resources for Thunder Creek and Fenn-Gib.
- Thunder Creek: 521,600 ounces (2,877,000 tonnes at
5.64 gpt) of Indicated and 510,000 ounces (2,693,000 tonnes at 5.89 gpt)
- Fenn-Gib (open-pit project): 1.30 million
ounces (40,800,000 tonnes at 0.99 gpt) of Indicated and 0.75 million
ounces (24,500,000 tonnes at 0.95 gpt) of Inferred.
- Total resources doubled in 2011 for second
straight year - to 6.3 million ounces (3.1 million ounces of measured
and indicated, 3.2 million ounces of inferred)
- Announced 1.9 kilometre downplunge extension of
Timmins Mine Ultramafic and Footwall mineralized structures, to vertical
depth of approximately 2.4 kilometres,
- Discovered 200 metre expansion of shallow
mineralization at Fenn-Gib, including intersection of 1.31 grams per
tonne over 414.00 metres.
Also during 2011, the Company advanced work to further
increase resources through the release of updated NI 43-101 reports for
Thorne, Bell Creek and Timmins Mine early in 2012. As part of the work
to update Timmins Mine resources, the Company is completing a mine
engineering study, including capital and operating plans, for the
integration of the Timmins and Thunder Creek deposits into a single
Timmins West Mine.
Tony Makuch, President and CEO of Lake Shore Gold, commented:
"We ended 2011 strong with our best quarter of the year, reflecting
continued improvements in throughput, grades and efficiencies. Looking
at our achievements, we doubled production in 2011 from the previous
year and doubled total resources for the second straight year, with
further growth in total resources expected early in 2012. At Bell Creek,
we launched a mill expansion to 3,000 tonnes per day, which remains on
track for completion late this year. We also continued to achieve
exploration success at virtually all of our key projects, and added a
very exciting new asset through the acquisition of the Fenn-Gib project,
which has the potential to be a large-scale, open-pit mining operation.
"Turning to 2012, our work plan is heavily focused on ore
delineation and infrastructure development designed to position the
Company to support a 3,000 tonne per day processing rate by late this
year. At the Timmins West Mine, multiple sublevel horizons will be
prepared targeting the Timmins deposit UM complex between the 650 and
810 metre levels and the Thunder Creek Rusk and Porphyry zones between
the 600 and 800 metre levels. At Bell Creek, a new mining complex is to
be initiated between the 475 and 600 metre levels.
"Based on our work plan, the Company will be poised for
significant production growth and increased mining flexibility
commencing in 2013. In 2012, we expect to achieve gold production of
between 85,000 and 100,000 ounces. Production will be weighted to the
second half of the year as we make progress with ore delineation and
infrastructure development at Timmins West."
Operating and development activities at the Company's Timmins
assets are being conducted under the supervision of Dan Gagnon, Senior
Vice-President, Operations. Mr. Gagnon is a qualified person as defined
by NI 43-101, and has reviewed and approved this news release.
About Lake Shore Gold
Lake Shore Gold is a rapidly growing mining company with a
vision to become a mid-tier gold producer through the successful
exploration, development and operation of its properties in and around
the century-old Timmins Gold Camp. The Company is in commercial
production at the Timmins Mine, has commenced pre-production development
at the adjacent Thunder Creek deposit, and is advancing an underground
advanced exploration program at its Bell Creek Mine. Mine production is
delivered to the Company's wholly owned mill (located on the Bell Creek
Property east of Timmins) which is operational at a capacity of 2,000
tonnes per day and is currently being expanded to 3,000 tonnes per day
with completion targeted for late 2012. The Company continues to invest
aggressively in exploration at its multiple properties in and around the
Timmins Camp. The Company's common shares trade on the TSX and NYSE
Amex under the symbol LSG.
Certain statements in this press release relating to the
Company's expected production levels, production growth, exploration
activities, potential for increasing resources, project expenditures and
business plans are "forward-looking statements" or "forward-looking
information" within the meaning of certain securities laws, including
under the provisions of Canadian provincial securities laws and under
the United States Private Securities Litigation Reform Act of 1995 and
are referred to herein as "forward-looking statements." The Company does
not intend, and does not assume any obligation, to update these
forward-looking statements. These forward-looking statements represent
management's best judgment based on current facts and assumptions that
management considers reasonable, including that operating and capital
plans will not be disrupted by issues such as mechanical failure,
unavailability of parts, labour disturbances, interruption in
transportation or utilities, or adverse weather conditions, that there
are no material unanticipated variations in budgeted costs, that
contractors will complete projects according to schedule, and that
actual mineralization on properties will not be less than identified
mineral reserves. The Company makes no representation that reasonable
business people in possession of the same information would reach the
same conclusions. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed
or implied by the forward-looking statements. In particular,
fluctuations in the price of gold or in currency markets could prevent
the Company from achieving its targets. Readers should not place undue
reliance on forward-looking statements. More information about risks and
uncertainties affecting the Company and its business is available in
the Company's most recent Annual Information Form and other regulatory
filings with the Canadian Securities Administrators, which are posted on
sedar at www.sedar.com, or the
Company's most recent Annual Report on Form 40-F and other regulatory
filings with the Securities and Exchange Commission.
Lake Shore Gold Corp.
Lake Shore Gold Corp.